No Poach Clauses – Hurt Fast Food Employees

“No poach” agreements prohibit employees working at a franchise from being able to accept employment at any other franchise operating under that same name. As an example, McDonald’s had all their franchisees sign agreements saying they would not solicit or hire any employees working at any other McDonald’s franchises. Many believe these agreements violate the anti-trust laws. In effect, they push down wages in the market since these franchises do not have to worry about competing for labor among themselves. Since there is no competition, there is no incentive to fairly compensate employees for their services. Several well known franchises have had these clauses in their agreements: Burger King, Domino’s Pizza, Dunkin’ Donuts, Jimmy Johns, Little Caesars, Papa Johns, Pizza Hut, and Wendy’s. If you worked at a franchise restaurant and were denied employment at a competing franchise operating under the same name, you may have been wrongfully denied employment opportunities in violation of the federal (and possible state) anti-trust laws. To learn more, contact us.